Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Concrete Group Subsidiary Cleared To Acquire Drymix


The Commerce Commission has granted clearance to Dunlop Drymix Limited, a subsidiary of the Concrete Group Limited, to acquire the assets and business of six companies that collectively trade in New Zealand as Drymix. Each of the Drymix companies were placed into receivership in mid-2020.

Division Chair Dr Derek Johnston said that the Commission is satisfied that the acquisition is unlikely to substantially lessen competition in any New Zealand market.

Central to the Commission’s decision was its assessment of what would happen to Drymix if it was not sold to the Concrete Group. In particular, the Commission considered and tested whether there was a realistic prospect that Drymix would be sold to an alternative purchaser who would supply bagged concrete and mortar products in competition with the Concrete Group.

“After careful consideration, the Commission is satisfied that Drymix would not be sold as a going concern. We consider that the receiver would close Drymix down and sell its assets individually. The assets, primarily land and bagging machinery, would not be used to compete against Concrete Group,” said Dr Johnston.

“Given this, we are satisfied that the proposed acquisition is unlikely to substantially lessen competition.”

A public version of the written reasons for the decision will be available on the Commission’s case register in the near future.

Background
Concrete Group Limited (under the ‘Cemix’ brand) and Drymix both manufacture and supply a range of bagged concrete and mortar products. These products are designed for use in DIY and projects where small amounts of concrete are needed and are sold nationwide in large building product stores (eg Mitre 10 and Bunnings), hardware stores and other building products outlets.

Since the Drymix companies were placed into receivership in mid-2020, the receiver for Drymix has continued to operate Drymix as a going concern while it looked to sell the relevant assets and/or businesses.

We will give clearance to a proposed merger if we are satisfied that the merger is unlikely to have the effect of substantially lessening competition in a market.

Further information explaining how the Commission assesses a merger application is available on our website.
 

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 



Consumer NZ: Buy-now, Pay-later Raking In $10m+ In Late Fees Annually

A Consumer NZ survey has found buy-now, pay-later services are costing shoppers more than $10 million a year in late fees. Close to four out of 10 Kiwi consumers use buy-now, pay-later services, such as Afterpay, Laybuy and Zip... More>>

Westpac: Catherine Mcgrath Appointed New Zealand CEO

Westpac Group CEO Peter King and the Westpac New Zealand Board today announced the appointment of Catherine McGrath as Chief Executive Officer, Westpac New Zealand... More>>


Amazon: AWS To Open Data Centres In New Zealand

Today, Amazon Web Services (AWS), announced plans to open an infrastructure region in Aotearoa New Zealand in 2024. The new AWS Asia Pacific (Auckland) Region will consist of three Availability Zones (AZs) and join the existing 81 Availability Zones across 25 geographic AWS Regions at launch... More>>

ALSO:



Statistics: Surge In Imports Results In Record Monthly Trade Deficit
Imports increased $1.8 billion in August 2021 compared with August 2020, resulting in a record monthly trade deficit of $2.1 billion, Stats NZ said today. Exports were little changed, down $42 million. "This is a larger deficit than normal because of higher values for imports.. More>>

Fonterra: Completes reset, announces annual results and long-term growth plan out to 2030

Fonterra Co-operative Group Limited today announced a strong set of results for the 2021 financial year, reflected in a final Farmgate Milk Price of $7.54, normalised earnings per share of 34 cents and a final dividend of 15 cents... More>>


Statistics: GDP rises in the June 2021 quarter

Gross domestic product (GDP) rose by 2.8 percent in the June 2021 quarter, following a 1.4 percent increase in the March 2021 quarter, Stats NZ said today. June 2021 quarter GDP was 4.3 percent higher when compared with the December 2019 quarter... More>>